Apple Pushes Back Against India's New Digital Market Regulations
Apple, Google, and Amazon are urging India to reconsider its proposed Digital Competition Bill, citing concerns over increased user costs and potential reductions in investment (via Reuters).
A U.S. lobby group representing major technology companies has asked the Indian government to rethink the proposed legislation that closely mirrors the European Union's Digital Markets Act. The request was made in a letter sent by the U.S.-India Business Council (USIBC), a part of the U.S. Chamber of Commerce, to India's Corporate Affairs Ministry. The proposed Digital Competition Bill aims to regulate the market power of large digital firms with global revenues exceeding $30 billion and at least 10 million local users.
The Digital Competition Bill seeks to introduce measures to prevent companies from exploiting non-public user data and from giving preferential treatment to their own services over those of rivals. The bill would also remove restrictions on sideloading apps.
The USIBC has raised concerns that these regulations could lead to significant repercussions for targeted companies like Apple. According to the council, the draft Indian law is "much further in scope" than the EU's regulations, potentially resulting in reduced investment in India, higher prices for digital services, and a decreased range of services available to consumers.
The Indian government argues that the new law is necessary to address the growing market power of a few large digital companies that "wield immense control over the market." The proposed legislation includes provisions for penalties of up to 10 percent of a company's annual global turnover for violations.
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